Activity in Gabon’s timber industry declined sharply in the second quarter of 2025, weighed down by weakening demand from China, particularly for veneer and sawn wood products, according to official data.
In its latest Economic Outlook, the Directorate General of Economy and Fiscal Policy (DGEPF) said a composite index tracking timber industry activity fell 3.0 percent quarter-on-quarter, reflecting slower exports and mounting stockpiles of finished products.
China is a major destination for Gabonese timber, and the downturn in demand has had an immediate impact on production, especially in export-oriented segments of the sector.
The sawmilling subsector was among the hardest hit. At the end of the second quarter, the sawmill production index dropped 8.2 percent, driven by a weak order book and difficulties selling output abroad, the report said. Producers also struggled to clear accumulated inventories.
Despite the quarterly decline, the DGEPF noted a modest recovery over a longer horizon, with sawmill production edging up 0.4 percent over the first half of the year, suggesting tentative signs of stabilisation.
More Read
The veneer industry also recorded a contraction, with production falling 8.4 percent from the previous quarter. The slowdown was attributed to several factors, including shortages in log supplies, subdued external demand and frequent power outages disrupting factory operations.
However, veneer producers posted a stronger performance on a half-year basis. Output rose 18.6 percent over the first six months of 2025, supported by increased domestic demand from the construction and public works sector, as well as a gradual improvement in export sales.
By contrast, the plywood segment showed resilience. The plywood production index climbed 29.3 percent compared with the first quarter, driven by robust demand from the European Union, parts of Asia, and the domestic market.
More Read
Gabon is one of Africa’s leading timber producers and has sought to promote local processing in recent years, including through restrictions on the export of unprocessed logs. The sector remains a key source of employment and export revenue.
The latest figures nonetheless underscore the vulnerability of Gabon’s timber industry to fluctuations in external demand, particularly from China, analysts say.
Officials said the current slowdown highlights the need for producers to diversify export markets and strengthen value-added processing to reduce exposure to single-market shocks.
Industry players are also being urged to improve operational efficiency and address structural challenges such as energy reliability to remain competitive in an increasingly volatile global market.
